8 Oct 2008

Best Biotech Investors' Dream Stocks

Investors are always hunting for the next big stock -- the dream stock whose price increases severalfold when the market finally discovers it. It's easy to look back and see what the 10 best stocks of the past decade were. But I'm more interested in how to find tomorrow's greatest companies.

One investing tool offers a variety of resources to help with finding tomorrow's leaders: Motley Fool CAPS. We've enlisted CAPS to screen for top biotech stocks and get the story behind them. CAPS' nifty screener will help us find stocks with:

A market cap of at least $100 million.
A three-year revenue growth rate of at least 15%.
A price-to-earnings ratio of less than 25.

Then we'll tap the collective intelligence of our 115,000-plus CAPS members to see whether these companies present real opportunities -- or whether the numbers fail to tell the true story.

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